In what is a first for the cannabis industry, Standard & Poors will be adding cannabis REIT Innovative Industrial Properties (NYSE:IIPR) to the 600 SmallCap Index next week. IIPR will replace existing index member Amedisys, which is being moved up to the S&P MidCap 400 Index:
The index, which was introduced in 1994, is designed to track small companies that meet specific criteria for inclusion and, along with the S&P 500 and the S&P MidCap 400, form the S&P Composite 1500. The current rules require the unadjusted market cap to be between $450 million and $2.1 billion, reasonable liquidity, more than 50% of the shares outstanding available for trading and financial viability, which is defined as positive earnings in the most recent quarter as well as over the past year.
IIPR has tripled since its late 2016 IPO and has increased 33.3% in 2019. The stock rallied in after-hours trading by 4% at the time of publication following news of its index addition.